In recent months, the decline in the cryptocurrency market has caused some of the major companies in the sector to cut out part of its templateThe latest, the Gemini exchange, has cut another 7% of its workforce, which added to the 10% it cut a few weeks ago, represents almost a quarter of its staff.
Other large companies in the sector have also been forced to cut a significant part of their workforce, in an attempt to reduce costs and stay afloat in the midst of a complex context. The falls of Terra or Celsius, as well as the fall of the NFT market, have caused OpenSea has cut 20% of its workforce.
In total, this bear market has taken place 2.000 jobsCompanies that have cut jobs include Coinbase, Crypto.com, BlockFi, Buenbit and Bitpanda.
What negative effects could these cuts have on the crypto sector in the long term?
First of all, announcing these staff cuts has Negative effects on the company's reputation and its relationship with customers, even breaking contracts and business ties. Much worse, when these cuts are announced not once, but twice.
On the other hand, as an article in Harvard Business Review“Layoffs are so ingrained in companies as a short-term solution to cut costs that managers ignore the fact that they create more problems than they solve.”
The article cites other studies that indicate that layoffs companies are depleted of talent, while creating a poor working environment, causing the employees who remain to leave in the following years.
One of these studies, carried out by the University of Wisconsin and Southern California, indicates that these cuts cause the workers who remain to have doubts about their future, which It affects their work performance and reduces their commitment to the company.
The University of New South Wales found that while productivity may increase in the short term as vacancies are filled by remaining workers, in the long term it results in higher rates of burnout and a decline in innovation.
Are there other solutions?
Some companies in the sector have opted for other measures to avoid these massive staff cuts. Instead of opting for quick solutions, these companies are They hold on to the talent and knowledge of their staff, while making appropriate adjustments to maintain the quality of their services.
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